Glastonbury leases on residential properties are gradually losing value. if your lease has approximately ninety years left, you should start thinking about a lease extension. An important point to note is that it is financially advisable for your lease extension to take place before the term of the current lease dips under 80 years - otherwise a higher amount will be payable. Flat owners in Glastonbury will mostly be legally entitled to a lease extension; however It would be wise to check with a conveyancing solicitor to confirm if you qualify. In certain cases you may not be entitled. There are prescribed deadlines and procedures to follow once the process is initiated so it’s prudent to be guided by a lawyer during the process.
Leasehold premises in Glastonbury with over 100 years outstanding on the lease are sometimes regarded as a ‘virtual freehold’. This is where the lease value the same as a freehold interest in your home. In such situations there is often little upside in buying the freehold unless savings on ground rent and service charges merit it.
| Lender | Requirement |
|---|---|
| Barnsley Building Society | 60 years from the date of the mortgage application subject to 35 years remaining at the end of the mortgage term. |
| Godiva Mortgages | A minimum of 70 years unexpired lease at completion for all scheme types apart from Lifetime Mortgages (Equity Release), which require a minimum unexpired term of 80 years at completion. |
| Halifax | Minimum 70 years from the date of the mortgage. |
| Royal Bank of Scotland | Mortgage term plus 30 years. |
| Yorkshire Building Society | 85 years from the date of completion of the mortgage. Please ensure that you explain the implications of a short term lease to the borrower. |
Using our service will provide you enhanced control over the value of your Glastonbury leasehold, as your property will be more valuable and marketable in relation to the lease length should you decide to sell. The lawyers that we work with are well versed in the legislation handling many hundreds of lease extensions or freehold purchase transactions.
Twenty four months ago Max, started to get close to the 80-year threshold with the lease on his studio apartment in Glastonbury. In buying his flat two decades ago, the length of the lease was of minimal relevance. As luck would have it, he became aware that he would imminently be paying way over the odds for a lease extension. Max was able to extend his lease at the eleventh hour in April. Max and the landlord who owned the flat above subsequently settled on a premium of £5,000 . If he not met the deadline, the figure would have gone up by at least £925.
In 2012 we were phoned by Mr H Dupont who, having purchased a basement apartment in Glastonbury in August 1998. We are asked if we could estimate the price would likely be for a ninety year extension to my lease. Similar properties in Glastonbury with an extended lease were in the region of £205,000. The average ground rent payable was £50 invoiced per annum. The lease lapsed on 3 September 2104. Considering the 79 years as a residual term we approximated the premium to the freeholder to extend the lease to be between £7,600 and £8,800 not including costs.
Last January we were called by Dr Y Bell , who completed a one bedroom flat in Glastonbury in April 2001. We are asked if we could shed any light on how much (approximately) price could be to extend the lease by ninety years. Identical premises in Glastonbury with 100 year plus lease were valued around £275,000. The mid-range ground rent payable was £65 invoiced quarterly. The lease concluded in 2093. Having 68 years as a residual term we calculated the premium to the freeholder to extend the lease to be between £13,300 and £15,400 not including expenses.